Wall Street Live

Treasuries Short-Selling Hits Historic Low Amid Inflation Fears

By Athena Xu

4/4, 09:56 EDT
  • Survey data reveals that outright shorts in US Treasuries are currently at historic lows, indicating a lack of bearish positioning among investors despite potential inflation risks on the horizon.
  • While JP Morgan's Treasury Survey shows clients reducing long Treasury bets as recession fears diminish, traders remain hesitant to take on outright short positions.
  • Bond volatility has been decreasing, creating a potential calm before a storm of rising volatility as inflation uncertainties grow, suggesting that yields are likely to remain elevated in the near future.